A Scots mother and a boxer have been disqualified as company directors after importing more than 350,000 vapes disguised as medical equipment in a £15 million tax evasion scheme.
Kyle McGinness, 24, from Glasgow’s Carntyne, and Leanne Moynes, 37, from Rutherglen, were directors of YSK Enterprises Limited, which imported vapes mislabelled as medical nebulisers. The Insolvency Service revealed that a shipment was intercepted by Border Force in 2023.
The company owed HM Revenue and Customs (HMRC) more than £15 million in unpaid VAT, customs duty and corporation tax before going into liquidation in 2024. Both individuals received a nine-year director ban, barring them from running a company until 2035.
Directors’ conduct under scrutiny
Dave Magrath, Director of Investigation Services at the Insolvency Service, said: “McGinness and Moynes went to considerable lengths to disguise what they were importing and then compounded that deception by telling HMRC they owed no tax at all.
“This was a deliberate attempt to avoid millions of pounds that should have been paid to the public purse. Director disqualification is one of the tools we use to protect the public and legitimate businesses from those who think they can operate outside the rules.
“By securing these disqualifications, we are making sure McGinness and Moynes cannot put other companies, creditors or consumers at risk in the same way.”
Financial details and bans
YSK Enterprises Limited imported large quantities of vapes from China between February and April 2023 but told HMRC it owed no VAT on the sales and failed to submit any corporation tax returns. HMRC calculated that the company owed almost £15 million in unpaid VAT and customs duty, and a further £437,101 in corporation tax.
Moynes also failed to keep proper accounting records, despite repeated requests from the liquidator. As a result, investigators could not verify what happened to more than £1.6 million of the company's assets, including land, machinery and vehicles.
McGinness was disqualified as a company director for nine years in June. Moynes was also disqualified for nine years, with her ban coming into effect in August.
Official responses and denials
Richard Hopwood, Head of Insolvency Profession at HMRC, said: “We are determined to allow honest businesses to thrive which is why it's crucial we work closely with the Insolvency Service and other partners to take action against anyone that undermines the tax system.
“The majority pay the tax that is due, but we will work with partners to pursue those who refuse to play by the rules.”
Phillip Holliday, Head of Central Region at Border Force, said: “Criminal gangs peddling illegal vapes and tobacco undercut honest businesses and blight our high streets.
“This case highlights the vital role Border Force plays in clamping down on this illicit trade. Through our intelligence-led enforcement action, we are protecting communities, levelling the playing field for business, and disrupting organised crime.”
When approached at the property listed on his director ban paperwork, McGinness denied all knowledge of the scheme, confirming his personal details but telling the reporter he’d never run a company and never heard of his co-director. He said: “350,000 vapes? I’m pretty sure I wouldn’t be staying in a council hoose in Carntyne. I don’t even know what the Insolvency Service is.”
The Insolvency Service said McGinness had signed a mandate bearing his address which confirmed he accepted the ban. When approached, Moynes said she was aware of the ban and declined to comment.
